Long-term Debt

3 Months Ended

Mar. 31, 2012

Long-term Debt [Abstract]

Long-term Debt

Note F: Long-term Debt

The table presents our long-term debt instruments and balances outstanding at March 31, 2012 and 2011 and September 30, 2011 (in thousands):

	March 31, 2012				March 31,		September 30,
	Carrying Amount		Contractual Amount		2011		2011
Recourse to EZCORP:
Domestic line of credit up to $175,000 due 2015	$	30,000	$	30,000	$	—	$	17,500
Term debt due 2012		—		—		20,000		—
Non-recourse to EZCORP:
10% unsecured notes due 2013	$	1,820	$	1,820	$	—	$	—
16% unsecured notes due 2013		5,404		5,141		—		—
20% unsecured notes due 2013		12,730		10,854		—		—
14% secured notes due 2013		3,327		3,079		—		—
17% secured notes due 2014		33,710		28,821		—		—
25% secured notes due 2015		6,675		5,125		—		—
18% secured notes due 2015		26,391		20,683		—		—
20% secured notes due 2015		10,783		7,335		—		—
10% unsecured notes due 2016		1,514		1,514		—		—
Total debt	$	132,354	$	114,372	$	20,000	$	17,500

On May 10, 2011, we entered into a new senior secured credit agreement with a syndicate of five banks, replacing our previous credit agreement. Among other things, the new credit agreement provides for a four year $175 million revolving credit facility that we may, under the terms of the agreement, request to be increased to a total of $225 million. Upon entering the new credit agreement, we repaid and retired our $17.5 million outstanding debt. The new credit facility increases our available credit and provides greater flexibility to make investments and acquisitions both domestically and internationally.

Pursuant to the credit agreement, we may choose to pay interest to the lenders for outstanding borrowings at LIBOR plus 200 to 275 basis points or the bank’s base rate plus 100 to 175 basis points, depending on our leverage ratio computed at the end of each calendar quarter. On the unused amount of the credit facility, we pay a commitment fee of 37.5 to 50 basis points depending on our leverage ratio calculated at the end of each quarter. From the closing date to approximately October 31, 2011, we paid a minimum interest rate of LIBOR plus 250 basis points or the bank’s base rate plus 150 basis points, at our option, and a commitment fee of 50 basis points on the unused portion of the credit line. Terms of the credit agreement require, among other things, that we meet certain financial covenants. At March 31, 2012, we were in compliance with all covenants. We expect the recorded value of our debt to approximate its fair value as it is all variable rate debt and carries no pre-payment penalty.

Deferred financing costs related to our credit agreement are included in intangible assets, net on the balance sheet and are being amortized to interest expense over the term of the agreement.

On January 30, 2012, we acquired a 60% ownership interest in Crediamigo, a specialty consumer finance company headquartered in Mexico City. Non-recourse debt amounts in the table above represent Crediamigo’s third party debt. All secured notes are guaranteed by the Crediamigo loan portfolio. The 14% secured notes require monthly payments of $0.1 million with remaining principal due at maturity. Beginning September 30, 2012, the 18% secured notes require monthly payments of $0.1 million increasing to $0.7 million on November 30, 2012, with the remaining principal due at maturity. On November 30, 2012, the 17% secured notes require monthly payments of $1.0 million, with remaining principal due at maturity. The difference between the carrying amount and contractual amount relates to premium on Crediamigo’s debt recorded as part of the purchase accounting, which is being amortized as a reduction of interest expense over the life of the debt.

Included in the amounts above are notes due to Crediamigo’s shareholders, which are presented in the table below (in thousands):

	March 31, 2012
16% unsecured notes due 2013	$	5,141
17% secured notes due 2014		9,676
10% unsecured notes due 2016		963
Total debt to stockholders	$	15,780